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What the new credit card law means for you

On February 22, major provisions of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009, also known as the Credit CARD Act, took effect, allowing credit cardholders more control over their personal finances. Essentially, consumers will see more transparent disclosures and easy-to-understand account statements and terms when applying for or using a credit card.

These sweeping regulatory changes are fully supported by Farm Bureau Bank, an ongoing proponent of fair credit card practices. However, the new rules and regulations have raised several questions, especially among current cardholders.

• Stricter rules on interest rate hikes.
• Payments now due on the same day each month.
• Limited fees for exceeding credit limits or payments made online or by phone.
• Restricted credit card marketing on college campuses and issuance to young adults.
• Double-cycle billing, which charges interest over two billing cycles rather than one, is now banned.
• A notice 45 days before an interest rate increase.
• Credit card agreements available online.

Stay informed! And be sure to read and understand your new rights and protections. Below are some valuable sites, provided by the Federal Reserve, which may help:

• How the Credit CARD Act affects you
• Useful credit card tools and features
• Get the most from your credit card
• Learn how to manage your credit
• Credit card glossary of terms